S&P Global (SPGI) To Report Q4 Earnings: What's In Store?

S&P Global Inc. (NYSE:SPGI) is scheduled to release fourth-quarter 2018 results on Feb 7, before market open.

Strength across segments, operating performance and positive impact of U.S. tax reforms are likely to boost S&P Global's results.

Over the past year, shares of S&P Global have gained 16.5%, outperforming the 11.3% rise of the industry it belongs to and 2.4% gain of the Zacks S&P 500 composite.

Let’s check out the expectations in detail.

Strength Across Segments to Drive Top Line

The Zacks Consensus Estimate for fourth-quarter 2018 revenues is pegged at $1.61 billion, indicating year-over-year growth of 1.1%. The upside is likely to be driven by strength across S&P Global Market Intelligence ("Market Intelligence"), S&P Global Platts ("Platts") and S&P Dow Jones Indices ("Indices") segments. In third-quarter 2018, total revenues of $1.54 billion increased 2.2% year over year.

Going by segments, Market Intelligence revenues are expected to be driven by growth in Risk Services and Data Management Solutions and mid-single digit organic growth in Desktop.

Platts revenues should benefit from growth in the core subscription business, which was partially offset by a decline in Global Trading Services due to reduced trading volumes in certain commodity products.

S&P Dow Jones Indices revenues are likely to be driven by an increase in asset-linked fees and revenues associated with data and custom subscriptions.

S&P Global Inc. Revenue (TTM)

The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $2.20, indicating year-over-year growth of 18.9%. Lower tax rates (as a result of Tax Cuts and Jobs Act), revenue growth and operating leverage are likely to boost S&P Global’s bottom line.

In third-quarter 2018, adjusted earnings of $2.11 per share increased 23.4% year over year.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

S&P Global has a Zacks Rank #4 and an Earnings ESP of -0.46%.

S&P Global Inc. Price and EPS Surprise

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on fourth-quarter 2018 earnings:

First Data (NYSE:FDC) has an Earnings ESP of +3.17% and a Zacks Rank #2. The company is scheduled to release results on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

IQVIA Holdings (NYSE:IQV) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report results on Feb 14.

Fiserv (NASDAQ:FISV) has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is scheduled to release results on Feb 7.

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